Global stocks rise, oil prices drop on Iran peace deal announcement

Stock markets across the world rose sharply on Monday and global oil prices fell after the United States and Iran reached a deal to end the war in West Asia, and reopen the Strait of Hormuz.

The agreement is expected to be signed in Switzerland on Friday.

Following the announcement about the deal, the benchmark Brent crude fell by 4.9% to $83.3 per barrel on Monday. The price of Brent was $78 per barrel on February 27, a day before the conflict started. It had reached as high as $114 per barrel on May 4.

Indian benchmark stock indices ended the trading session on a strong note.

The Sensex and Nifty had risen nearly 1% by the time the session ended. During early trade, the Nifty briefly reclaimed the 24,000-level after 20 days.

Japan’s Nikkei 225 index jumped nearly 5% and South Korea’s Kospi 5.2%. Hong Kong’s Hang Seng was up half a percent and China’s Shanghai composite by 1.6%.

Since the conflict began, the Strait of Hormuz, the narrow waterbody connecting the Gulf to the Arabian Sea, has effectively been blocked for most international commercial vessels, triggering a global energy crisis. About 20% of global petroleum supply passes through the maritime chokepoint.

Energy markets had seen significant volatility during the conflict.

On Sunday, Trump said...

Read more